8th annual marine money gulf ship finance conference
DESCRIPTION
8th Annual Marine Money Gulf Ship Finance Conference. Wednesday , 7th March 2012, Emirates Towers Hotel – Dubai. Polarcus – a seismic major. Major provider of marine 3D seismic services globally Specialized Arctic offering with incorporated technologies - PowerPoint PPT PresentationTRANSCRIPT
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www.polarcus.com 1
8th Annual Marine Money Gulf Ship Finance Conference Wednesday, 7th March 2012, Emirates Towers Hotel – Dubai
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www.polarcus.com 2
Polarcus – a seismic major
• Major provider of marine 3D seismic services globally
• Specialized Arctic offering with incorporated technologies
• 500+ highly experienced seismic and maritime employees
• Offices in Dubai, London, Houston, Singapore, and Rio
• Listed on Oslo Børs (OAX:PLCS); Market Cap USD~500 M
• ~12% market share in 2012 POLARCUS ALIMA
2008 2009 2010
Polarcus launched
2008 Polarcus N
adia
Polarcus N
aila
Polarcus A
sima
Polarcus A
lima
Polarcus S
amur
Polarcus S
elma
20122011
Q2– Polarcu
s Adira
Q1– Polarcu
s Amani
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www.polarcus.com 3
RIGHTPLAN, RIGHTSIZE, RIGHTDESIGN
Fleet Key Features
• All new and uniform fleet
• Reduced noise and vibrations• Ice class 1A (except Nadia & Naila ICE C)
• Improved transit performance
• New builds on time and on budget
2008 2009 2010
Polarcus launched
2008 Polarcus N
adia
Polarcus N
aila
Polarcus A
sima
Polarcus A
lima
Polarcus S
amur
Polarcus S
elma
20122011
Q2– Polarcu
s Adira
Q1– Polarcu
s Amani
POLARCUS NADIA & POLARCUS NAILA
12 Streamer 3D vessel
POLARCUS ASIMA & POLARCUS ALIMA
12 Streamer 3D vessel
POLARCUS SAMUR & Vyacheslav Tikhonov
8 Streamer 3D vessel
POLARCUS AMANI & POLARCUS ADIRA
12-14 Streamer 3D vessel
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www.polarcus.com 4
2008 2009 2010
Launch2008
Founders capital162M
20122011
HY 55M CB 35MEquity 50M
Lehman Brothers went bust
restructuring with sale of 2 vessels
Bank debt 80M
IPO 125Min equity
USD 410Mfleet bank facility
HY 80MBank debt 55MEquity 65M
Equity 60M
CB 125M
HY 40MEquity 40M
Sale Lease back180M (2 x 90M)
Raising
1.45$ billionin
Historically badfinancial climate
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www.polarcus.com 5
• Founders equity USD 162 millionNOK 10.4/share or USD 2/share
• Zickerman family• Drydocks World Dubai• Management
2008 2009 2010
Launch2008
Founders capital162M
20122011
HY 55M CB 35MEquity 50M
restructuring with sale of 2 vessels
Bank debt 80M
IPO 125Min equity
USD 410Mfleet bank facility
HY 80MBank debt 55MEquity 65M
Equity 60M
CB 125M
HY 40MEquity 40M
Sale Lease back180M (2 x 90M)
Polarcus Launched April 2008
Drydocks World - Dubai
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www.polarcus.com 6
Sale lease back
• Sale lease back on the first two vessels
• USD 180 million• Implied interest rate ~12%• Loan structure backed by
Export Credit Agency
2008 2009 2010
Launch2008
Founders capital162M
20122011
HY 55M CB 35MEquity 50M
restructuring with sale of 2 vessels
Bank debt 80M
IPO 125Min equity
USD 410Mfleet bank facility
HY 80MBank debt 55MEquity 65M
Equity 60M
CB 125M
HY 40MEquity 40M
Sale Lease back180M (2 x 90M)
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www.polarcus.com 7
July 2008 – 2nd round of financing
• HY 55 – 13%, first pri. Samur • CB 35 – 8.5%, conversion +30%• Equity USD 50 million
NOK 12/share or USD 2.4/share
Just in time before
Lehman Brothers
2008 2009 2010
Launch2008
Founders capital162M
20122011
HY 55M CB 35MEquity 50M
restructuring with sale of 2 vessels
Bank debt 80M
IPO 125Min equity
USD 410Mfleet bank facility
HY 80MBank debt 55MEquity 65M
Equity 60M
CB 125M
HY 40MEquity 40M
Sale Lease back180M (2 x 90M)
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www.polarcus.com 8
Summer 2009 - Restructuring
2008 2009 2010
Launch2008
Founders capital162M
20122011
HY 55M CB 35MEquity 50M
restructuring with sale of 2 vessels
Bank debt 80M
IPO 125Min equity
USD 410Mfleet bank facility
HY 80MBank debt 55MEquity 65M
Equity 60M
CB 125M
HY 40MEquity 40M
Sale Lease back180M (2 x 90M)
Sold 2 vessels with a
buyback option at cost + USD 5 million
Transaction backed by Founders
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www.polarcus.com 9
15 September 2009 – Bank debt
• USD 80 million for Asima• CIRR financing (OECD)• Fixed 3.93% plus bank margin• Maturity 12 years
2008 2009 2010
Launch2008
Founders capital162M
20122011
HY 55M CB 35MEquity 50M
restructuring with sale of 2 vessels
Bank debt 80M
IPO 125Min equity
USD 410Mfleet bank facility
HY 80MBank debt 55MEquity 65M
Equity 60M
CB 125M
HY 40MEquity 40M
Sale Lease back180M (2 x 90M)
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www.polarcus.com 10
IPO – 30 September 2009
• USD 125 millionNOK 4.5/share or USD 0.77/share
• 1st IPO in Norway, 3rd in Europesince financial crisis started
2008 2009 2010
Launch2008
Founders capital162M
20122011
HY 55M CB 35MEquity 50M
restructuring with sale of 2 vessels
Bank debt 80M
IPO 125Min equity
USD 410Mfleet bank facility
HY 80MBank debt 55MEquity 65M
Equity 60M
CB 125M
HY 40MEquity 40M
Sale Lease back180M (2 x 90M)
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www.polarcus.com 11
October 2010 – Buyback Alima (1st option)
• USD 55 million Bank debt fixed 3.93% (CIRR), 12 years
• USD 80 million HY, 2nd Pri12.5%, 5 years
• Equity USD 65 million NOK 5.15/ share or USD 0.90/share
2008 2009 2010
Launch2008
Founders capital162M
20122011
HY 55M CB 35MEquity 50M
restructuring with sale of 2 vessels
Bank debt 80M
IPO 125Min equity
USD 410Mfleet bank facility
HY 80MBank debt 55MEquity 65M
Equity 60M
CB 125M
HY 40MEquity 40M
Sale Lease back180M (2 x 90M)
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www.polarcus.com 12
November 2010 – Ordering vessels 7 & 8
• Equity USD 60 millionNOK 5.30/share or USD 0.93/share
• To be built in Norway due to 80% financing available throughExport Credit Agency
• Cost per vessel USD 168 million
2008 2009 2010
Launch2008
Founders capital162M
20122011
HY 55M CB 35MEquity 50M
restructuring with sale of 2 vessels
Bank debt 80M
IPO 125Min equity
USD 410Mfleet bank facility
HY 80MBank debt 55MEquity 65M
Equity 60M
CB 125M
HY 40MEquity 40M
Sale Lease back180M (2 x 90M)
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www.polarcus.com 13
February 2011 – Buyback of 2nd option
• CB USD 125 million2.875%, conversion price 32.5%
• Vessel to be bare boated to Sovcomflot from delivery in August 2011
• Bareboat EBITDA 25 million/year
2008 2009 2010
Launch2008
Founders capital162M
20122011
HY 55M CB 35MEquity 50M
restructuring with sale of 2 vessels
Bank debt 80M
IPO 125Min equity
USD 410Mfleet bank facility
HY 80MBank debt 55MEquity 65M
Equity 60M
CB 125M
HY 40MEquity 40M
Sale Lease back180M (2 x 90M)
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www.polarcus.com 14
Summer 2011 – The Quantum Leap
• USD 410 million Fleet bank facility
• 5.6% fixed interest, 12 years maturity
• Structured with security for 5 vesselsincluding the 2 new builds
• Refinancing of the 13% HY
• Average interest cost post drawdown ~7.5%
2008 2009 2010
Launch2008
Founders capital162M
20122011
HY 55M CB 35MEquity 50M
restructuring with sale of 2 vessels
Bank debt 80M
IPO 125Min equity
USD 410Mfleet bank facility
HY 80MBank debt 55MEquity 65M
Equity 60M
CB 125M
HY 40MEquity 40M
Sale Lease back180M (2 x 90M)
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www.polarcus.com 15
October 2011 – USD 80 million
• Equity USD 40 millionNOK 4.0/share (premium)
• NOK 230 million HY (USD 40m)14% interest
• Completes the Capex needs fornew builds
2008 2009 2010
Launch2008
Founders capital162M
20122011
HY 55M CB 35MEquity 50M
restructuring with sale of 2 vessels
Bank debt 80M
IPO 125Min equity
USD 410Mfleet bank facility
HY 80MBank debt 55MEquity 65M
Equity 60M
CB 125M
HY 40MEquity 40M
Sale Lease back180M (2 x 90M)
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www.polarcus.com 16
Improved financial position
• Total financing of USD 1.45 billion secured
• Equity USD 507 million
• Debt USD 960 million
• Fleet bank facility of USD 410 million signed in Q3 2011
• Average weighted interest rate for the group ~7.5%
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www.polarcus.com 17
PLCS – Share price movements
IPOReverse split
2:1
IPOReverse split
2:1
Founders capital
Founders capital
USD 140 MUSD 140 M
MACONDOMACONDO
Polarcus Alima
Polarcus Alima
Polarcus AmaniPolarcus Adira
Polarcus AmaniPolarcus Adira
Polarcus SelmaV. Tikhonov
Polarcus SelmaV. Tikhonov
Private Placement
Private Placement
Fleet bank facility
Fleet bank facility
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Lessons learnt
• Utilize the open windows In the financial markets
• Proactive Investor Relation strategy
• Investigate and understand Export Credit Agency funding
• Prepare for the Black swans
• Hug a banker